Moody's: Beverage Packaging outlook negative

Moody's Investors Service said it changed the outlook for Beverage Packaging Holdings I SA and Beverage Packaging Holdings (Lux) II SA to negative from stable and affirmed the B1 corporate family and probability-of-default ratings, the Ba1 €589 million senior secured bank debt, B2 (LGD4) €480 million senior notes due 2016 and B3 (LGD5) €420 million senior subordinated notes due 2017.

The loss-given-default rates were changed to 86% from 88% for the senior subordinated bonds and to 57% from 60% for the senior unsecured bonds.

The agency said the affirmation reflects the company's solid deleveraging since 2007 and its strong business profile.

The outlook change, however, reflects the overall bleak macroeconomic environment that might negatively impact sleeve volumes in the company's markets, Moody's said. While the agency does not foresee any material deterioration in credit metrics given the long-term nature of sleeve supply contracts as well as flexibility in the company's capex strategy, the pace of deleveraging might lag behind initial expectations.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.